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Inflation falls to 1.9% in Spain, down over a full percentage point

Last year's rate was over 10% in June, third-highest level ever recorded 

A driver fills their car up with petrol
A driver fills their car up with petrol / Gemma Tubert/Gerard Vilà
Catalan News

Catalan News | @catalannews | Barcelona

June 29, 2023 10:30 AM

June 29, 2023 10:35 AM

The inflation rate in Spain continued the trend seen in the last months in June, according to preliminary data released by Spain's National Statistics Institute on Thursday.

Prices are 1.9% higher than this time last year, when the consumer price index skyrocketed up to 10.2%, one of the highest inflation rates ever recorded in Spain. This explains why some prices are still at a high point compared to where they were before the Ukraine war. 

June's Consumer Price Index (CPI) figure is down over a full percentage point compared with May, when the annual inflation rate stood at 3.2%. 

The decrease is mainly down to fuel, electricity, and food prices decreasing.

In December 2022, the government applied a VAT reduction on basic foods, which was extended this week until the end of the year. VAT on basic foods will continue at 0% and that of oils and pastes at 5%.

The underlying inflation rate, which excludes unprocessed food and energy due to their frequent volatility in prices, has fallen for the fourth consecutive month and now lies at 5.9%. When this indicator falls below 5.5%, the Spanish government will remove the VAT reduction measure on basic foods.

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